JONESBORO, Ark. (KAIT) - The second round of stimulus checks is expected to come out soon.
Having some extra cash is always a good thing, but what should you spend that extra money on?
Certified Public Accountant at NEA Financial Services, Kevin Clark, says that it all depends on your needs.
Clark says that 2020 has been stressful, and it’s tempting to spend the money on something fun or unnecessary, but you should think twice before throwing the money away.
“I think my official advice to people would be make sure your immediate needs, if you have specific needs that have happened due to COVID that have cost you some expense, obviously you want to take care of those,” Clark said.
He says if you’re falling behind on high priority bills, it’s a no brainer. Use your money for that.
“If you’ve gotten behind in some very important things like your rent, mortgage payment, utilities, or even a vehicle payment, something that will be very important for you to keep and maintain, make that a priority,” Clark said.
If you believe you may lose your job or get a cut in hours, putting the money in a savings account is the way to go.
A safe place is FDIC or NCUA insured accounts.
“If a huge economic disaster were to happen or your bank got into some serious trouble, the FDIC just ensures that your money is protected,” said Clark.
A high yield savings account can earn you 16 times more than the national average.
If you have credit card debt, it’s best to pay off high-interest debt before saving the cash.
If you already have three to six months’ worth of savings, investing in brokerage or real estate accounts may pay off for you.
“Talk to a good financial advisor and explore your options. If you have your savings set aside and you don’t have any deficiencies, and you’re doing okay, any extra you got, you can invest it,” Clark said.